NEW YORK: OPEC and allied oil-producing countries decided Thursday to maintain the amount of oil they pump to the world even as the new omicron variant casts a shadow of uncertainty over the global economic recovery from the coronavirus pandemic.
Officials from OPEC countries, led by Saudi Arabia, and their allies, led by Russia, voted to stick with a pre-omicron pattern of steady, modest monthly increases in oil releases — a pace that has frustrated the United States and other oil-consuming nations as gasoline prices rise.
The OPEC+ alliance approved an increase in production of 400,000 barrels per day for the month of January.
The fast-mutating variant led countries to impose travel restrictions when it emerged late last week. In a worst-case scenario, lockdowns triggered by omicron could cut oil demand by nearly 3 million barrels per day in early 2022, according to projections by Rystad Energy.
Positive news about drugs to treat the variant or the vaccines’ effectiveness against it could improve that outlook. But even with positive news, a decrease in oil demand is likely because “the distribution of these remedies may not actually reach all markets with extreme immediacy, which would still necessitate the lockdowns in much of the developing world,” said Louise Dickson, senior oil markets analyst for Rystad.
The price of a barrel of US benchmark crude fell with news of the variant and then fell further as OPEC+ revealed it wasn’t going to curtail production. It was about $78 a barrel a week ago and was trading at about $66 a barrel Thursday. International benchmark Brent crude followed a similar path, falling from $79 a barrel a week ago to about $69 on Thursday.
The decision by OPEC+ to stay the course sends a signal that “the group does what it says and that they will continue their policy on their own terms,” Dickson said. “It also really signals that OPEC+ needs a bit more time to really dig into the numbers on the omicron variant.”
Some analysts had predicted that the OPEC+ alliance — made up of OPEC members and allied non-members like Russia — would act cautiously Thursday, pending more clarity from medical experts on the new variant.
Before omicron’s appearance, the OPEC+ meeting had been shaping up as a potentially fraught moment in a growing dispute between oil-supplying nations and oil-consuming ones, as the global economy rebounds from the worst of the pandemic downturn and demand for oil surged.
Angering the US and its allies, OPEC+ has stuck to a plan to open the petroleum taps bit by bit — even as oil prices surged to seven-year highs — until deep production cuts made during the depths of the pandemic are restored.
With rising gas prices putting him under political pressure at home, President Joe Biden last week responded to OPEC’s refusal to increase supplies more quickly by announcing the US and other nations would release tens of millions of barrels of oil from their strategic reserves, boosting supplies and temporarily lowering prices. But gasoline prices in the US barely moved.
And then, omicron’s emergence unsettled those dynamics.
White House press secretary Jen Psaki said Thursday that there are no plans to slow releases from strategic reserves, despite the advent of the variant and OPEC’s decision.
“We welcome the decision today to continue the 400,000 barrels-per-day increase,” Psaki said. “We believe this should help facilitate the global economic recovery.”
OPEC+ will meet again Jan. 4.
OPEC+ sticks to modest boost in oil output despite omicron
https://arab.news/j5dy2
OPEC+ sticks to modest boost in oil output despite omicron
Lebanese Christian leader says Hezbollah’s fighting with Israel has harmed Lebanon
- Samir Geagea of the Lebanese Forces Party said Hezbollah should withdraw from areas along the border with Israel
- The Lebanese army should deploy in all points where militants of the Iran-backed group have taken positions
`MAARAB, Lebanon: The leader of a main Christian political party in Lebanon blasted the Shiite militant group Hezbollah for opening a front with Israel to back up its ally Hamas, saying it has harmed Lebanon without making a dent in Israel’s crushing offensive in the Gaza Strip.
In an interview with AP on Tuesday night, Samir Geagea of the Lebanese Forces Party said Hezbollah should withdraw from areas along the border with Israel and the Lebanese army should deploy in all points where militants of the Iran-backed group have taken positions.
His comments came as Western diplomats try to broker a de-escalation in the border conflict amid fears of a wider war.
Hezbollah began launching rockets toward Israeli military posts on Oct. 8, the day after Hamas-led militants stormed into southern Israel in a surprise attack that sparked the crushing war in Gaza.
The near-daily violence has mostly been confined to the area along the border, and international mediators have been scrambling to prevent an all-out war. The fighting has killed 12 soldiers and 10 civilians in Israel. More than 350 people have been killed in Lebanon including 273 Hezbollah fighters and more than 50 civilians.
“No one has the right to control the fate of a country and people on its own,” Geagea said in his heavily guarded headquarters in the mountain village of Maarab. “Hezbollah is not the government in Lebanon. There is a government in Lebanon in which Hezbollah is represented.” In addition to its military arm, Hezbollah is a political party.
Geagea, whose party has the largest bloc in Lebanon’s 128-member parliament, has angled to position himself as the leader of the opposition against Hezbollah.
Hezbollah officials have said that by opening the front along Israel’s northern border, the militant group has reduced the pressure on Gaza by keeping several Israeli army divisions on alert in the north rather than taking part in the monthslong offensive in the enclave.
“All the damage that could have happened in Gaza ... happened. What was the benefit of military operations that were launched from south Lebanon? Nothing,” Geagea said, pointing the death toll and massive destruction in Lebanon’s border villages.
Israel’s war against Hamas in Gaza has killed more than 34,000 Palestinians, caused wide destruction and displaced hundreds of thousands to the city of Rafah along Egypt’s border. Israel’s Prime Minister Benjamin Netanyahu vowed Tuesday to launch an offensive into the southern Gaza city of Rafah despite international calls for restraint.
Geagea said Hezbollah aims through the ongoing fighting to benefit its main backer, Iran, by giving it a presence along Israel’s border and called for the group to withdraw from border areas and Lebanese army deploy in accordance with a UN Security Council resolution that ended the 34-day Israel-Hezbollah war in 2006.
Geagea also discussed the campaign by his party to repatriate Syrian refugees who fled war into Lebanon.
Those calls intensified after a Syrian gang was blamed for last month’s killing of Lebanese Forces official Pascal Suleiman, allegedly in a carjacking gone wrong, although many initially suspected political motives.
Lebanon, with a total population of around 6 million, hosts what the UN refugee agency says are nearly 785,000 UN-registered Syrian refugees, of which 90 percent rely on aid to survive. Lebanese officials estimate there may be 1.5 million or 2 million, of whom only around 300,000 have legal residency.
Human rights groups say that Syria is not safe for mass returns and that many Syrians who have gone back — voluntarily or not — have been detained and tortured.
Geagea, whose party is adamantly opposed to the government of President Bashar Assad in Syria, insisted that only a small percentage of Syrians in Lebanon are true political refugees and that those who are could go to opposition-controlled areas of Syria.
The Lebanese politician suggested his country should follow in the steps of Western countries like Britain, which passed controversial legislation last week to deport some asylum seekers to Rwanda.
“In Lebanon we should tell them, guys, go back to your country. Syria exists,” said Geagea, who headed the largest Christian militia during Lebanon’s 1975-90 civil war.
Saudi FM receives Salvadoran counterpart in Riyadh
- During the reception, the ministers reviewed relations between the Kingdom and El Salvador and opportunities to enhance cooperation
RIYADH: Saudi Foreign Minister Prince Faisal bin Farhan received his Salvadoran counterpart Alexandra Hill Tinoco in Riyadh on Wednesday.
During the reception, the ministers reviewed relations between the Kingdom and El Salvador and opportunities to enhance cooperation between the two countries in all fields.
Various topics of common interest were also discussed during the meeting.
Marriott International reveals that majority of its guests in Saudi Arabia are local
RIYADH: Marriott International has revealed that the majority of the hotel’s guests in Saudi Arabia are local, indicating the importance of internal tourism in the Kingdom.
Speaking in an interview with Arab News on the sidelines of the Future Hospitality Summit, taking place in Riyadh from April 29 to May 1, Chadi Hauch, the hotel’s regional vice president of development, explained that the local market has driven leisure tourism in Saudi Arabia.
“At this stage right now, obviously the majority of the guests are local, but you have to take into consideration as well that, in Saudi, tourism has been majorly local,” Hauch said.
He underscored that COVID-19 was a significant experience that opened the eyes of the Ministry of Tourism and the local Saudi market.
“During COVID-19, when the whole country closed down, the Saudis were super excited to visit their own countries. They were pushed within their own country because they needed to get out of the cities such as Riyadh and Jeddah and they started visiting secondary cities like Abha,” the VP said.
Consequently, Hauch added that this was when they noticed the nation had much more to offer.
“But obviously as the destination grows and obviously this is this is what the government is pushing for, we will definitely start seeing international travelers trying to visit these destinations that is trying to position itself kind of like a Maldives destination,” he said.
Hauch also explained that Marriott International currently has 38 open properties operating in the Kingdom and is planning for 40 more.
During the interview, the VP tackled how Marriott International Inc. and Al Qimmah Hospitality, a subsidiary of BinDawood Trading, signed an agreement to bring the JW Marriott brand to Jeddah.
Located on the Jeddah Corniche, the hotel is expected to become a prime destination for luxury-seeking travelers who desire a waterfront escape, he underlined.
“The beauty about this project is that it’s a mixed-use project that will have office space and will have retail. So, it’s quite a sizable project that will take a little bit of time. We expect hopefully to open in the next five to six years, depending on how fast the construction goes,” Hauch disclosed.
The VP also highlighted the announcement a few days earlier that the company had signed an agreement with NEOM to open its second Ritz-Carlton Reserve in Saudi Arabia.
The hotel will be located in Trojena, a year-round mountain destination situated in the country’s northwest region.
The resort is expected to feature 60 expansive one- to four-bedroom villas. Plans also include a spa, swimming pools, and multiple culinary venues.
Additionally, Hauch discussed how Marriott has two different main operating models.
“We either do management agreements or we do franchisee agreements. Usually when we do operate these hotels in these models, we don’t get involved in the investment of the hotel. Usually, it is the owner who develops the hotel, and it depends on the location and, positioning of the hotel. These construction costs vary; they vary quite a lot between a five-star, a three-star, four-star or the luxury positioning,” the VP emphasized.
More than 1,200 global investors are expected to have attended the FHS. The event, held at Al Faisaliah Hotel, focused on sustainable tourism and technology-driven hospitality under the theme, “Invest in Tomorrow: Today, Together.”
Polish officials condemn arson attack on Warsaw synagogue
- Foreign Minister Radoslaw Sikorski, quoting the country’s chief rabbi, said “someone tried to set fire to the Nozyk synagogue with a Molotov cocktail“
- A statement from the Jewish community in Warsaw expressed its “concern and indignation” at the attack
WARSAW: Polish authorities on Wednesday condemned an arson attack against a Warsaw synagogue.
Foreign Minister Radoslaw Sikorski, quoting the country’s chief rabbi, said “someone tried to set fire to the Nozyk synagogue with a Molotov cocktail.”
“Thank God no-one was hurt,” the minister added in a post on X, formerly Twitter.
“I condemn this shameful attack on the Nozyk synagogue in Warsaw,” Polish President Andrzej Duda wrote on X. “Anti-Semitism has no place in Poland. There is no place for hate in Poland.”
An AFP journalist at the scene saw a black stain across a window that appeared to have been caused by flames, but there was no major damage to the synagogue.
A statement from the Jewish community in Warsaw to AFP expressed its “concern and indignation” at the attack.
“Fortunately, the synagogue was empty at night and the material damage is minor,” it added.
The fire from the Molotov cocktail burned itself out outside the building, said the text, from Eliza Panek, vice president of the Jewish community in Warsaw.
“For the moment, we don’t know anything about the person or persons behind the attack, or their motives,” she added.
Warsaw police told AFP they “always take this kind of incident seriously” and the would do everything to ensure those responsible were punished.
So far, no one has claimed responsibility for the attack.
But Sikorski’s message speculated on who might have carried out the attack on the 20th anniversary of Poland’s membership of the European Union.
“Maybe the same ones who scrawled the Stars of David in Paris?” he said.
French prosecutors started an investigation after several dozen Jewish symbols were daubed on buildings in Paris in October as tensions increased amid Israel’s war against Hamas in Gaza.
France believes that Russian security services were behind the vandalism, an official French source said, but Russia has denied any involvement.
Barrick Gold in talks with IFC, other agencies to raise $2 billion for Pakistan’s Reko Diq
- Reko Diq in southwestern Pakistan is one of world’s biggest under-developed copper mines
- Barrick Gold CEO says mining company needs $2 billion for first phase of Reko Diq project
TORONTO: Barrick Gold is not interested in bidding for Anglo American, which last week received a $39 billion takeover offer from BHP, and is building its own copper portfolio, the Canadian miner’s CEO Mark Bristow said on Wednesday.
If BHP’s proposed acquisition of Anglo is successful, it would create one of the world’s biggest copper miners.
Analysts and investors expect rival bids to emerge after BHP’s offer was rejected last week by Anglo, which said it was opportunistic, significantly undervaluing the company and its future prospects.
“We are not interested in bidding for Anglo American, as we are building (copper assets) of our own,” Bristow told Reuters.
Bristow is betting on developing the Reko Diq copper project in Pakistan in which it holds a 50 percent stake, the first phase of which is expected to cost $5.5 billion.
Barrick is in talks with the International Finance Corporation and other agencies to raise at least $2 billion for the first phase of the project, Bristow added.
Reko Diq, one of the biggest yet-to-be-developed copper mines in the world, is also 50 percent owned by the government of Pakistan. Saudi Arabia is in talks to buy part of the stake from the Pakistan government.
In Mali, where Barrick has a gold mine, the military-led government was last year in talks with miners over a change to its mining law that could see it boost state and private Malian interests in new projects to 35 percent from up to 20 percent previously.
However, Bristow said that the company has received written assurances from the junta that there was no threat of its assets being nationalized.
